DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part of the
legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law
or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 231 Engrossed 2017 Regular Session Thibaut
Abstract: Allows an immediate family member of the mayor or a member of a governing authority
of a municipality with a population of 5,000 or less, or related legal entities to enter into
certain transactions under the supervision or jurisdiction of the municipality.
Present law provides for any mayor or member of a governing authority of a municipality with a
population of 5,000 or less, or legal entity in which he has a controlling interest, from entering into
any transaction that is under the supervision or jurisdiction of the municipality. Provides that any
person who enters into such a transaction does so under the supervision or jurisdiction of the
municipality and requires the municipality to submit a plan to the Board of Ethics for approval. The
plan shall include recusal of the elected official in matters affecting the transaction; quarterly
affidavits concerning the recusal filed with the clerk of the municipality and the board; the manner
of supervising the transactions.
Present law provides certain rules based on the amount of the transaction. Exempts individual
transactions of $250 or less, until they exceed $2,500 in the aggregate in a calendar year; thereafter
such a transaction requires at least three telephone quotations with written confirmation in the
manner provided for transactions in excess of $250, but less than $2,500. Requires telephone
quotations with written confirmation or facsimile quotations to be solicited from at least three
vendors within the municipality, the parish, or within a 50-mile radius of the municipality for
transactions in excess of $250, but less than $2,500, except in case of emergency. Provides that the
plan adopted by the municipality and subject to board approval may specify situations in which a
quotation submitted by the elected official or his legal entity may be accepted even if it was not the
lowest bid received by the municipality. Provides for an elected official or legal entity in which the
elected official has a controlling interest to enter into transactions with the municipality in excess
of $2,500 only after written invitations are sent to at least three bona fide qualified bidders, other
than the elected official or his legal entity, and upon specific advance approval by the board.
Proposed law retains present law, but additionally allows an immediate family member of such a
mayor or governing authority member, or legal entity in which such an immediate family member
has a controlling interest to enter into transactions with the municipality subject to the same
conditions, and requires the elected official involved to file the same affidavits required by present
law for transactions entered into by his immediate family members and legal entities in which his
immediate family members own a controlling interest. Additionally makes some technical changes.
Effective upon signature of governor or lapse of time for gubernatorial action. (Amends R.S. 42:1123(22))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on House and Governmental
Affairs to the original bill:
1. Clarify that after individual transactions of $250 or less exceed $2,500 in the aggregate
within the calendar year, such a transaction would require at least three telephone
quotations with written confirmation.
2. Make technical changes.